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UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
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FORM 8-K |
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CURRENT REPORT |
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PURSUANT TO SECTION 13 OR 15(d) OF |
THE SECURITIES EXCHANGE ACT OF 1934 |
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Date of Report (Date of earliest event reported): October 23, 2014 |
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1st Source Corporation |
(Exact name of registrant as specified in its charter) |
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Indiana | 0-6233 | 35-1068133 |
(State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
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100 North Michigan Street, South Bend, Indiana 46601 |
(Address of principal executive offices) (Zip Code) |
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574-235-2000 |
(Registrant's telephone number, including area code) |
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Not Applicable |
(Former name or former address, if changed since last report) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 23, 2014, the Board of Directors elected James Seitz President of 1st Source Corporation. As President of 1st Source Bank, Seitz has been responsible for business and retail banking, electronic and mobile banking, branch administration, deposit operations and corporate-wide marketing. Since joining 1st Source in 1980 as Branch Manager of the Bank's Maple Lane Banking Center, Seitz has served as a Regional Manager, Supervisor of Banking Centers, Director of Online Banking and Manager of Consumer and Electronic Banking.
Additionally, Andrea Short, Chief Financial Officer and Treasurer of 1st Source Corporation, was elected Executive Vice President of the Company joining John Griffith, Executive Vice President, Secretary and General Counsel.
ITEM 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
The Board of Directors amended the Company's bylaws effective October 23, 2014 to (i) make conforming changes for the changes disclosed below to certain committees of the Board and (ii) clarify that the respective duties of the Chief Executive Officer and the President may or may not be performed by the same individual as the Board determines.
A copy of the Company's Amended and Restated Bylaws, as amended, is attached hereto as Exhibit 3.2.
ITEM 8.01 Other Events.
The Board of Directors approved changes to the charters of the Executive and Governance Committee and the Nominating Committee effective October 23, 2014. The principal change is the shifting of all governance responsibilities from the Executive and Governance Committee to the Nominating Committee, renaming the Executive and Governance Committee to the Executive Committee, and renaming the Nominating Committee to the Governance & Nominating Committee. The Executive Committee shall continue to be authorized to act for the Board between meetings and continue to have several other responsibilities as stated in the revised charter. The Governance & Nominating Committee shall be responsible for company governance issues as well as director nominations. The Board took this action to align governance responsibilities with a committee of the Board whose members must be independent directors.
A copy of the Executive Committee Charter, as amended, is attached hereto as Exhibit 99.1.
A copy of the Governance & Nominating Committee Charter, as amended, is attached hereto as Exhibit 99.2 .
ITEM 9.01 Financial Statements and Exhibits.
Exhibit 3.2: 1st Source Corporation Amended and Restated Bylaws (as of October 23, 2014)
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Exhibit 99.1: | 1st Source Corporation and 1st Source Bank Executive Committee Charter (as of October 23, 2014) |
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Exhibit 99.2: | 1st Source Corporation and 1st Source Bank Governance & Nominating Committee Charter (as of October 23, 2014) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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| | 1st SOURCE CORPORATION |
| | (Registrant) |
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Date: October 29, 2014 | | /s/ CHRISTOPHER J. MURPHY III |
| | Christopher J. Murphy III |
| | Chairman of the Board and CEO |
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Date: October 29, 2014 | | /s/ ANDREA G. SHORT |
| | Andrea G. Short |
| | Treasurer and Chief Financial Officer |
| | Principal Accounting Officer |
Exhibit 3.2
BYLAWS OF 1ST SOURCE CORPORATION
AMENDED BY DIRECTORS
October 23, 2014.
ARTICLE 1
NAME AND REGISTERED OFFICE
Section 1.1 Name. The name of the corporation is 1st Source Corporation (“Corporation”).
Section 1.2 Registered Office. The address of the registered office of the Corporation in Indiana is 100 N. Michigan Street, South Bend, Indiana 46601. The Corporation may have other offices, both within and without the State of Indiana, as the board of directors of the Corporation ("Board") from time to time shall determine or the business of the Corporation may require.
ARTICLE 2
SHARES
Section 2.1 Shares Certificates and Their Transfer. The shares of stock of the Corporation shall be represented by certificates, provided that the Board may provide by resolution that some or all of any class or series shall be uncertificated shares that may be evidenced by a book-entry system maintained by the registrar of such shares. If shares are represented by certificates, such certificates shall be in the form, other than bearer form, approved by the Board. The certificates representing shares of each class shall be signed by, or in the name of, the Corporation by the Chairman of the Board, Chief Executive Officer, or the President and by the Secretary or Assistant Secretary. Such signatures may be manual or facsimiles. Although any officer, transfer agent or registrar whose signature is affixed to such a certificate ceases to be such officer, transfer agent or registrar before such certificate has been issued, it may nevertheless be issued by the Corporation with the same effect as if such officer, transfer agent or registrar were still such at the date of its issue.
Section 2.2 Transfer of Shares. Shares of stock of the Corporation shall be transferable as prescribed by law and these bylaws. Transfers of shares shall be made on the books of the Corporation, and for certificated shares upon surrender of the certificate or certificates representing the same. The certificate or certificates (or an instrument of transfer or assignment satisfactory to the Corporation and delivered to the Corporation) must be properly endorsed by the registered holder or by such person’s duly authorized attorney-in-fact, with the endorsement witnessed by one witness or guaranteed by a bank or registered securities broker or dealer. The requirement for a witness or guarantee may be waived in writing upon the form of endorsement by the Chief Executive Officer or President of the Corporation. No transfer of shares shall be valid as against the Corporation for any purpose until it shall have been entered in the share records of the Corporation. The Board may appoint, or authorize any officer or officers to appoint, one or more transfer agents and one or more registrars.
BYLAWS OF 1ST SOURCE CORPORATION
Section 2.3 Lost, Stolen, or Destroyed Certificates. The Corporation may issue a new certificate or uncertificated shares in place of any certificate alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the owner of the lost, stolen or destroyed certificate, or such person’s legal representative. The Board, the Chairman of the Board, the Executive Committee, the President, the Chief Executive Officer or the Chief Executive Officer’s delegate in writing may, in the exercise of discretion, require the owner or such person’s legal representative to give a bond sufficient to indemnify the Corporation against any claim that may be made against the Corporation on account of the certificate alleged to be lost, stolen or destroyed or the issuance of such new certificate or uncertificated shares.
ARTICLE 3
SHAREHOLDERS
Section 3.1 Place of Meetings. All meetings of Shareholders shall be held at such place as may be specified in the notices of the meeting.
Section 3.2 Annual Meeting. Unless otherwise determined by the Board, the annual meeting of Shareholders for the election of Directors and for the transaction of other business as may properly come before the meeting shall be held in April each year, the exact date and time to be determined by the Board and stated in the notice of meeting. Failure to hold the annual meeting at the designated time does not affect the validity of any corporate action.
Section 3.3 Special Meetings. Special meetings of Shareholders must be held on call of the Chief Executive Officer, the President, the Chairman of the Board of Directors or the Board of Directors. Any notice of a special meeting shall specify by whom such meeting was called.
Section 3.4 Record Date. The Board may fix a record date not exceeding seventy (70) days prior to the date of any meeting of Shareholders for the purpose of determining the Shareholders entitled to notice of and to vote at the meeting. If the Board does not fix a record date, the record date shall be the tenth (10th) day prior to the date of the meeting.
Section 3.5 Notice of Meetings. A notice stating the date, time and place of the meeting, and, in the case of a special meeting or when otherwise required by any provision of the Indiana Business Corporation Law (the “Act”), the Articles or the Bylaws, the purpose or purposes for which the meeting is called, shall be delivered or mailed to each Shareholder entitled to vote or otherwise entitled to notice under the Act, at the address which appears on the records of the Corporation, or shall be given orally in person or by telephone, at least ten (10) days but not more than sixty (60) days before the date of the meeting.
Section 3.6 Waiver of Notice. Notice of any meeting may be waived before or after the date and time stated in the notice in a writing signed by any Shareholder if the waiver is delivered to the Corporation for inclusion in the minutes or filing with the corporate records. Attendance at any meeting waives objection to lack of notice or defective notice of the meeting unless the Shareholder at the beginning of the meeting objects to holding the meeting or transacting business at the meeting. Attendance at any meeting also waives objection to consideration of a particular matter at the meeting that is not within the purpose or purposes described in the meeting notice, unless the Shareholder objects to considering the matter when it is presented.
BYLAWS OF 1ST SOURCE CORPORATION
Section 3.7 Proxies. A Shareholder entitled to vote at any meeting of Shareholders or to express consent to corporate action in writing without a meeting may vote in person or by proxy appointed in a writing signed by the Shareholder or a duly authorized attorney-in-fact of such Shareholder. An appointment of a proxy is effective when received by the Secretary or other officer or agent authorized to tabulate votes. No appointment of a proxy shall be valid after eleven (11) months from the date of its execution unless it expressly provides a longer time. The general proxy of a fiduciary shall be given the same effect as the general proxy of any other Shareholder.
Section 3.8 Quorum. At any meeting of Shareholders, the holders of a majority of the outstanding shares which may be voted on the business to be transacted at the meeting shall constitute a quorum. Action on a matter, except election of Directors, is approved if votes cast favoring the action exceed the votes cast opposing the action, unless a greater number is required by law, the Articles or the Bylaws. Directors shall be elected by a plurality of the votes cast by the shares entitled to vote in the election at a meeting at which a quorum is present. If a quorum is not present at any meeting, the holders of record of a majority of shares adjourn the meeting from time to time, without notice, other than announcement at the meeting, until a quorum shall be present or represented, unless the Board fixes a new record date, which it must do if the meeting is adjourned to a date more than one hundred twenty (120) days after the date fixed for the original meeting. At any adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally scheduled.
Section 3.9 Voting List. The Secretary of the Corporation shall make a complete list of the Shareholders entitled to notice of each meeting, arranged in alphabetical order by voting group (and within each voting group by class or series of shares), with the address and number of shares held by each, which list shall be on file at the principal office of the Corporation, or at a place identified in the meeting notice in the city where the meeting will be held, and subject to inspection by any Shareholder or the Shareholder’s duly authorized attorney-in-fact on written demand at any time during regular business hours for a period of five (5) business days before the meeting. The list shall be produced at the meeting and subject to inspection by any Shareholder or the Shareholder’s duly authorized attorney-in-fact during the meeting or any adjournment. The original stock register or transfer book, or a duplicate kept in the State of Indiana, shall be the only evidence as to who are the Shareholders entitled to examine the list, or to notice of or to vote at any meeting of Shareholders.
Section 3.10 Action Without Meeting. Any action required or permitted to be taken at any meeting of the Shareholders may be taken without a meeting and without prior notice, if consents in writing setting forth the action taken are signed by the holders of outstanding shares having at least the minimum number of votes that would be required to authorize or take the action at a meeting at which all shares entitled to vote on the action were present and voted. The written consent must bear the date of signature of the shareholder who signs the consent and be delivered to the corporation for inclusion in the minutes or filing with the corporate records. Action taken under this section is effective when the last Shareholder signs the consent unless the consent specifies a different prior or subsequent effective date.
Section 3.11 Meeting by Telephone, Etc. Any or all Shareholders may participate in any meeting of Shareholders by, or through the use of, any means of communication by which all Shareholders participating may simultaneously hear each other during the meeting. A shareholder so participating is deemed to be present in person.
BYLAWS OF 1ST SOURCE CORPORATION
ARTICLE 4
BOARD OF DIRECTORS
Section 4.1 Duties and Number. All corporate powers shall be exercised by or under the authority of, and the business and affairs of the Corporation shall be managed under the direction of a Board of Directors consisting of not fewer than three (3) or more than twenty-five (25) members. The actual number of Directors may be fixed or changed, from time to time, within the minimum and maximum, by the Board.
Section 4.2 Election, Term of Office and Qualification. If there are nine (9) or more Directors, their terms shall be staggered by dividing the total number of Directors into three (3) groups, with each group containing one-third (1/3) of the total as near as may be. In that event, the terms of Directors in the first group expire at the first annual Shareholders meeting after their election, the terms of the second group expire at the second annual Shareholders meeting after their election, and the terms of the third group expire at the third annual Shareholders meeting after their election. At each annual Shareholders meeting held thereafter, Directors shall be chosen for a term of two (2) years or three (3) years as the case may be, to succeed those whose terms expire. Directors need not be Shareholders of the Corporation at the time of nomination or election. No decrease in the number of Directors shall have the effect of shortening the term of any incumbent Director.
The Board or an authorized committee shall determine the criteria for and eligibility of nominees for the Board of Directors. Nominees shall, at a minimum:
(1)Be active in the nominee’s chosen business, occupation or profession; and
(2)Be in such health as permits active participation as a member of the Board; and
(3)Be below 72 years of age as of the date of the next election of Directors.
The Board or authorized committee may waive the requirements in (1) and (3) for an incumbent Director upon a determination that such Director’s continued service on the Board is in the best interests of the Corporation.
Section 4.3 Retirement. Any Director who is not a current or former officer of the Corporation or any subsidiary and becomes 72 years of age during his/her term of office shall resign as a Director prior to the next annual meeting of shareholders, provided, however, that the Board or authorized committee may waive such requirement upon a determination that such Director’s continued service through a portion or all of the remainder of his/her term of office is in the best interests of the Corporation.
Section 4.4 Lead Director. Unless otherwise determined by the Board, the incumbent chairperson of the Governance & Nominating Committee shall serve as Lead Director. The Lead Director will conduct the executive sessions of the independent directors.
BYLAWS OF 1ST SOURCE CORPORATION
Section 4.5 Meetings. Regular meetings of the Board may be held with or without notice of the date, time, place or purpose of the meeting. Special meetings of the Board may be called at any time by the Chairman of the Board of Directors, the Lead Director, the Vice-Chairman of the Board of Directors, the Chief Executive Officer, or by the President, and shall be called on request of not less than a majority of the members of the Board or on request of the Executive Committee. Notice of a special meeting shall be sent by the person or persons calling the meeting to each Director at the Director’s residence or usual place of business by letter sent by first class United States mail, postage prepaid, or private carrier service, or by electronic mail, text message or other form of wire or wireless communication, and shall be effective if received on or before the day of the meeting or five (5) days after sending; or may be personally delivered or given orally to a Director in person or by telephone at any time on or before the day of the meeting. A Director may waive any required notice before or after the date and time stated in the notice. Except as provided in the next sentence, the waiver must be in writing, signed by the Director entitled to the notice, and filed with the minutes or corporate records. A Director’s attendance at or participation in a meeting waives any required notice to the Director of the meeting unless the Director at the beginning of the meeting or promptly upon the Director’s arrival objects to holding the meeting or transacting business at the meeting and does not vote for or assent to action taken at the meeting.
Section 4.6 Executive Session of Independent Directors. To ensure free and open discussion and communication among the independent Directors of the Board, the independent Directors will meet in executive session at least twice per year with no other Directors present. Executive sessions shall be informal sessions for open discussion. Issues raised in executive session may be raised by the independent directors and formally addressed by subsequent Board or Board committee action, as appropriate.
Section 4.7 Meeting by Telephone, Etc. Any or all of the members of the Board or of any committee designated by the Board may participate in a meeting of the Board or the committee by any means of communication by which all Directors participating may simultaneously hear each other during the meeting, and participation by these means constitutes presence in person at the meeting.
Section 4.8 Quorum. A majority of the number of Directors designated for a full Board shall be necessary to constitute a quorum for transacting any business except filling vacancies, and the act of the majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board unless the act of a greater number is required by law, the Articles or the Bylaws.
Section 4.9 Action Without Meeting. Any action required by law to be taken at any meeting of the Board or of any committee of the Board may be taken without a meeting if one or more written consents setting forth the action taken are signed or transmitted electronically by all members of the Board or of the committee, as the case may be, and the written consents are included in the minutes of proceedings of the Board or committee or filed with the corporate records and delivered to the Secretary. Action taken in this manner is effective when the last Director signs or otherwise provides the consent unless the consent specifies a different prior or subsequent effective date.
Section 4.10 Resignations. Any Director may resign at any time by giving written notice to the Board, the Chairman of the Board, the Chief Executive Officer, the President, or the Secretary. Such resignation shall take effect when delivered unless the notice specifies a later effective date or an effective date determined upon the happening of an event.
BYLAWS OF 1ST SOURCE CORPORATION
Section 4.11 Removal. Any Director may be removed, either with or without cause, at any meeting of the Shareholders or Directors called for that purpose if the meeting notice states that the purpose or one of the purposes of the meeting is removal of the Director and if the number of votes cast to remove the Director exceeds the number of votes cast not to remove the Director. If the removal occurs at a meeting of the Shareholders and the notice so provides, the vacancy caused by the removal may be filled at the meeting by vote of the holders of a majority of the outstanding shares present and entitled to vote for the election of Directors.
Section 4.12 Vacancies. Any vacancy occurring on the Board, caused by removal, resignation, death or other incapacity, or increase in the number of Directors, may be filled by the Board, or, if the Directors remaining in office constitute fewer than a quorum of the Board, they may fill the vacancy by a majority vote of the remaining members of the Board.
Section 4.13 Compensation of Directors: The Board shall fix the compensation of Directors.
Section 4.14 Election Not to Be Governed by Indiana Code Section 23-1-33-6(c): The Corporation shall not be governed by any of the provisions set forth in Section 23-1-33-6(c) of the Act.
Section 4.15 Designation of Committees. The Board of Directors may designate two (2) or more of its number to constitute one (1) or more committees, and may, at any time, increase or decrease the number of members of any committee, fill vacancies, change any member, and change the functions or terminate the existence of any committee.
Section 4.16 Executive Committee. The Board of Directors may designate three (3) or more of its members to constitute an Executive Committee. During the intervals between meetings of the Board, and subject to any limitations required by law or by resolution of the Board, the Executive Committee shall have and may exercise all of the authority of the Board, except that the Committee shall not have authority to: (i) authorize distributions, except that the Committee (or an executive officer of the Corporation designated by the Board) may authorize or approve a reacquisition of shares or other distribution if done according to a formula or method, or within a range, prescribed by the Board; (ii) approve or propose to the Shareholders action that by law is required to be approved by the Shareholders; (iii) fill vacancies on the Board or on any of its committees; (iv) except to the extent permitted by subsection (vii) below, amend the Articles when no Shareholder action is required by law; (v) adopt, amend, or repeal By-aws; (vi) approve a plan of merger not requiring Shareholder approval; or (vii) authorize or approve the issuance or sale or a contract for sale of shares, or determine the designation and relative rights, preferences, and limitations of a class or series of shares, except the Board may authorize the Committee (or an executive officer of the Corporation designated by the Board) to take the action described in this subsection (vii) within limits prescribed by the Board.
Section 4.17 Meetings; Procedure; Quorum. The provisions of these Bylaws and those required by law that apply to the Board regarding meetings, action without meetings, notice and waiver of notice, and quorum and voting requirements apply to the committees and their members as well. The members of any committee shall act only as a committee, and the individual members shall have no power as such. Each committee shall appoint a secretary, who need not be a member of the committee, to keep minutes of its meetings. All minutes of meetings of committees shall be submitted to the next succeeding meeting of the Board for approval, but failure to submit the minutes or to receive approval shall not invalidate any action taken by the Corporation upon authorization by a committee.
BYLAWS OF 1ST SOURCE CORPORATION
ARTICLE 5
OFFICERS
Section 5.1 Number and Qualifications. The Officers of the Corporation shall consist of the Chairman of the Board of Directors, the Chief Executive Officer, the President, the Secretary, the Treasurer, and any other officers chosen by the Board or the Chairman of the Board at the times, in the manner and for the terms prescribed by the Board or the Chairman of the Board, respectively. The same individual may simultaneously hold more than one (1) office in the Corporation.
Section 5.2 Election and Term of Office: The Officers shall be chosen annually by the Board, except that Assistant Officers may be designated as provided in Section 5.12 of these Bylaws. Each Officer shall hold office until a successor is chosen and qualified, or until death, or resignation or removal in the manner provided in these Bylaws.
Section 5.3 Resignations. Any Officer may resign at any time by giving written notice to the Board, the Chairman of the Board, the Chief Executive Officer, the President or the Secretary. Except as otherwise provided in an employment agreement, a resignation shall take effect when the notice is delivered unless the notice specifies a later effective date. If a resignation is made effective at a later date and the Corporation accepts the future effective date, then the Board may fill the pending vacancy before the effective date if the Board provides that the successor does not take office until the effective date.
Section 5.4 Removal. Any Officer, excepting an Officer who is also a Director, may be removed either with or without cause, at any time, by the Board or by such Officer or Officers to whom the Officer is directly responsible. Any Officer who is a Director may be discharged as an Officer at any time by the Board of Directors or the Executive Committee. Except as otherwise provided in an employment agreement, the employment of all Officers shall be for an indefinite time, terminable at will.
Section 5.5 Vacancies. Whenever a vacancy occurs in any office by reason of death, resignation, removal, increase in the number of officers of the Corporation, or otherwise, it shall be filled by the Board, and the Officer so chosen shall hold office during the remainder of the predecessor’s term or as otherwise provided in these Bylaws. Assistant Officers may be designated to fill vacancies in the manner provided in Section 5.12 of these Bylaws.
Section 5.6 Chairman of the Board of Directors. The Chairman of the Board of Directors shall be a Director. The Chairman shall preside at all meetings of the Shareholders and at all meetings of the Board of Directors. The Chairman shall also perform all such other duties as are incidental to the office or properly required by the Board.
Section 5.7 Vice-Chairman of the Board of Directors. The Vice-Chairman of the Board of Directors shall be a Director. In the absence of the Chairman, the Vice-Chairman shall preside at all meetings of the Shareholders and at all meetings of the Board of Directors. The Vice-Chairman shall perform such other duties as are properly required by the Board.
BYLAWS OF 1ST SOURCE CORPORATION
Section 5.8 Chief Executive Officer and President. Subject to the general control of the Board, the Chief Executive Officer and the President, respectively, shall manage and supervise all the affairs and personnel of the Corporation, shall discharge all the usual functions of the chief executive officer and the president of a corporation, and shall perform such other duties as the Bylaws or the Board may prescribe. The Chief Executive Officer and the President shall have full authority to execute proxies on behalf of the Corporation, to vote stock owned by it in any other corporation, and to execute, with the Secretary, powers of attorney appointing other corporations, partnerships, or individuals the agent of the Corporation, all subject to the provisions of the Act, the Articles and the Bylaws. The respective duties of the Chief Executive Officer and the President may or may not be performed by the same person, subject to the discretion of the Board. The Chief Executive Officer shall be a Director. The President may be a Director.
Section 5.9 Vice-Presidents. Each Vice-President shall have general supervision of those affairs of the Corporation designated by the Officer to whom the Vice-President is directly responsible and may employ and discharge subordinate officers, employees, clerks and agents under his supervision. Each Vice-President shall perform all such duties as are incidental to his office or properly required by the Board of Directors, Chairman of the Board of Directors and such other Officer or Officers to whom he is directly responsible.
Section 5.10 Secretary. The Secretary shall authenticate records of the Corporation, attend all meetings of the Shareholders and of the Board, keep or cause to be kept a true and complete record of the proceedings of Directors’ and Shareholders’ meetings, perform a like duty, when required, for all committees appointed by the Board, and perform any other duties which the Bylaws, the Board, the Chairman of the Board, the Lead Director, the Vice-Chairman, the Chief Executive Officer or the President may prescribe. The Secretary shall give all notices of the Corporation; however, in case of the Secretary’s absence, negligence or refusal so to do, any notice may be given by a person directed by the Chief Executive Officer or President or by the requisite number of Directors or Shareholders upon whose request the meeting is called.
Section 5.11 Treasurer. The Treasurer shall perform all such duties as are incidental to the office or properly required by the Board or such Officer or Officers to whom the Treasurer is directly responsible.
Section 5.12 Assistant Officers. The Board, the Chairman of the Board, or the Vice-Chairman of the Board may from time to time designate and elect Assistant Officers who shall have the powers and duties as the Officers whom they are elected to assist shall specify and delegate to them, and any other powers and duties which the Bylaws, the Board or the Chairman of the Board or the Vice-Chairman of the Board may prescribe.
Section 5.13 Delegation of Authority. In case of the absence of any Officer of the Corporation, or for any other reason that the Board may deem sufficient, the Board may temporarily delegate the powers or duties of the Officer to any other Officer or Assistant Officer or to any Director.
ARTICLE 6
INDEMNIFICATION
Section 6.1 Indemnification of Directors and Officers. Every person who is or was a Director or Officer of the Corporation shall be indemnified by the Corporation against all liability, including any obligation to pay a judgment, settlement, penalty, excise tax, or fine, and against reasonable expenses, including counsel fees, actually incurred by such person in his or her Official Capacity, provided that such person is determined in the manner specified in Section 6.3 to have met the standard of conduct specified in Section 6.4.
BYLAWS OF 1ST SOURCE CORPORATION
Section 6.2 Reimbursement of Expenses in Advance of Final Disposition. The Corporation may, upon authorization of those entitled to select counsel under Section 6.3, pay for or reimburse the reasonable expenses, including counsel fees, incurred by any person who is or was a Director or Officer of the Corporation in connection with any Proceeding to which such person is a Party because of such person serving in his or her Official Capacity in advance of final disposition of the Proceeding if:
(1)The person furnishes the Corporation a written affirmation of the person’s good faith belief that the person has met the standard of conduct specified in 6.4 below;
(2)The person furnishes the Corporation an unlimited general written undertaking, executed personally or on the person’s behalf, to repay the advance if it is ultimately determined that the person did not meet such standard of conduct; and
(3)A determination is made in the manner specified in 6.3 below that the facts then known to those making the determination would not preclude indemnification under 6.1 above.
Section 6.3 Authorization of Indemnification. Upon demand for indemnification, the Corporation shall determine whether to authorize indemnification by any one of the following procedures, as selected by the Board of Directors by majority vote of the entire Board of Directors:
(1)By the Board of Directors by majority vote of a quorum consisting of Directors not at the time Parties to the Proceeding as to which indemnification or advancement of expenses is at issue.
(2)If a quorum cannot be obtained under Subdivision (1), by majority vote of a committee duly designated by the Board of Directors (in which designation Directors who are Parties may participate), consisting solely of two or more Directors not at the time Parties to the Proceeding.
(3)By special legal counsel selected by the Board of Directors or its committee in the manner prescribed in Subdivision (1) or (2); or, if a quorum of the Board of Directors cannot be obtained under Subdivision (1) and a committee cannot be designated under Subdivision (2), by special legal counsel selected by majority vote of the full Board of Directors (in which selection Directors who are Parties may participate).
(4)By a majority vote of shareholders excluding shares owned or controlled by Directors or Officers who at the time of the vote are Parties to the Proceeding.
Section 6.4 Standard of Conduct. The standard of conduct for any act or omission is:
(1)In the case of any criminal Proceeding, the person either had reasonable cause to believe that the person’s conduct was lawful, or, had no reasonable cause to believe the person’s conduct was unlawful.
BYLAWS OF 1ST SOURCE CORPORATION
(2)In all non-criminal Proceedings, either (a)(i) the person’s conduct was in good faith, and (ii) the person reasonably believed (A) in the case of conduct in the person’s Official Capacity, that the person’s conduct was in the Corporation’s best interest, or, (B) in all other cases, that the person’s conduct was not opposed to the Corporation’s best interests; or (b) the person’s breach of or failure to act in accordance with the standard set forth in this subsection (2)(a) above did not constitute willful misconduct or recklessness. A person’s conduct with respect to an employee benefit plan for a purpose which the person reasonably believed to be in the interests of the participants in and beneficiaries of the plan is conduct that satisfies the requirements of this subsection (2)(a)(i)(B).
(3)The termination of a Proceeding by judgment, order, agreement, or settlement, or upon conviction or a plea of nolo contendere, or the equivalent of any of the foregoing, is not, of itself, determinative that the person did not meet the standard of conduct.
Section 6.5 Definitions. As used in this Article 6, the following terms have the following meanings:
“Director” means an individual who is or was a director of the Corporation. “Director” includes the heirs, estate, executors, administrators, and personal representatives of a Director.
“Officer” means an individual who is or was an officer of the Corporation. “Officer” includes the heirs, estate, executors, administrators, and personal representatives of an Officer.
“Official Capacity” means: (a) when used with respect to a Director, the position of Director of the Corporation; (b) when used with respect to an Officer, the office in the Corporation held by an Officer, and (c) when used with respect to a Director or Officer, any service by a person while a Director or Officer of the Corporation at the Corporation’s specific request, as a Director, Officer, partner, trustee, employee, or agent of the Corporation, partnership, joint venture, trust, employee benefit plan, or other enterprise, whether for profit or not. For these purposes, a person is considered to be serving an employee benefit plan at the Corporation’s specific request of the person’s duties to the Corporation also impose duties on, or otherwise involve services by, such person to the plan or to participants in or beneficiaries of the plan.
“Parties” means persons who were, are, or are threatened to be named defendant or respondent in a Proceeding.
“Proceeding” means any threatened, pending, or completed action, suit, proceeding, or appeal therefrom, whether civil, criminal, administrative, regulatory, or investigative, and whether formal or informal.
Section 6.6 Insurance. The Corporation reserves the right to purchase and maintain insurance for the matters covered by these provisions and to the extent of such insurance payments these provisions shall not be effective.
BYLAWS OF 1ST SOURCE CORPORATION
ARTICLE 7
CONFLICT OF INTEREST TRANSACTIONS
Section 7.1 Conflict of Interest Transactions. No contract or transaction between the Corporation and one or more of its Directors, or between the Corporation and any other corporation, partnership, association, or other organization in which one or more of its directors, officers, trustees, or general partners are Directors of this Corporation, or in which any Director of the Corporation has a material financial interest, shall be void or voidable solely for this reason, or solely because the Director is present at or participates in the meeting of the Board or committee thereof which authorizes the contract or transaction, or solely because his or their votes are counted for such purpose, if:
(1)The material facts as to his or her interest and as to the contract or transaction are disclosed or are known to the Board of Directors or the committee, and the Board or committee authorizes, approves or ratifies the contract or transaction by a majority vote without counting the vote of the interested Director or Directors, provided, that more than one disinterested Director is required to act under this section; or
(2)The material facts as to his or her interest and as to the contract or transaction are disclosed or are known to the stockholders entitled to vote, and the contract or transaction is authorized, approved, or ratified by majority vote of the Stockholders; or
(3)The contract or transaction was fair to the Corporation.
Section 7.2 Quorum. Common or interested Directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors or of a committee which authorizes the contract or transaction.
Section 7.3 Review of Related Party Transactions. In addition to the foregoing requirements for approval of a transaction in which a Director may be interested, the Audit Committee of the Board of Directors (or such other independent body of the Board of Directors as the Board may designate) shall conduct an appropriate review and oversee all related party transactions for potential conflict of interest situations on an ongoing basis and the disclosure of same pursuant to Item 404 of regulation S-K of the Securities and Exchange Act of 1934.
ARTICLE 8
GENERAL PROVISIONS
Section 8.1 Seal. The Board may designate the form of a corporate seal. The seal may be used by causing it or a facsimile to be impressed or affixed or in any other manner reproduced, but the failure of the Board to designate a seal or the absence of the seal from any instrument shall not affect in any way its validity or effect.
Section 8.2 Fiscal Year. The fiscal year of the Corporation shall end on December 31.
Section 8.3 Amendments of Bylaws: These Bylaws may be amended, altered or repealed at any meeting of the Board by the affirmative vote of a majority of the Board.
Exhibit 99.1
1ST SOURCE CORPORATION AND 1ST SOURCE BANK
EXECUTIVE COMMITTEE CHARTER
PURPOSE
The purpose of the Executive Committee (the “Committee”) of the respective Boards of Directors (the “Board”) of 1st Source Corporation and 1st Source Bank (the “Company”) is to exercise (except as otherwise provided by law or in the Company’s By-Laws) all the authority of the Board during the intervals between the meetings of the Board and to provide guidance to management concerning the Company’s strategy and execution of the strategy.
COMMITTEE MEMBERSHIP, QUALIFICATIONS
AND MEETING SCHEDULE
The Committee shall consist of at least three directors. The members of the Committee shall be appointed and replaced by the Board. Members are appointed annually and are expected to serve at least three years and thereafter at the pleasure of the Board. The Board shall appoint one member of the Committee as its chairperson. The Committee shall meet at such times as may be necessary to carry out its responsibilities. The Committee will cause to be kept adequate minutes of all its proceedings, and will report its actions to the next meeting of the Board.
AUTHORITY, RESPONSIBILITIES AND DUTIES
The Committee’s authority, responsibilities and duties are as follows:
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• | Except as otherwise provided by law or in the Company’s By-Laws, exercise the power and authority delegated to the Committee herein and in the Company’s By-Laws at any time between the meetings of the Board when a matter requires expeditious action by the Board or when it would not be practical for the full Board to meet to review or act upon the matter. Such matters may include, among other things, Major Expenditure Proposals that require approval by the Board, new policies or proposed changes to existing policies that require expedited approval, or new strategic initiatives or transactions that require approval by the Board. |
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• | Review and approve loans over the authority limits of the Company’s management or committees as outlined in the Company’s credit policies. |
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• | Give guidance to management regarding actions taken as part of its strategic operating or budget plans. |
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• | Provide guidance on acquisitions, divestures or other transactions that need to be negotiated in private and may ultimately require review and approval by the full Board. |
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• | Review its own performance and this charter and recommend any proposed changes every other year coincident with the biennial self-assessment of the full Board. |
LIMITATION
Nothing in this charter is intended to alter in any way the standard of conduct that applies to any of the directors under Ind. Code § 23-1-35 or § 28-13-11, as applicable and as amended. This charter does not impose, nor shall it be interpreted to impose, any duty on any director greater than, or in addition to, the duties or standard of conduct established by such provisions.
Exhibit 99.2
1ST SOURCE CORPORATION AND 1ST SOURCE BANK
GOVERNANCE & NOMINATING COMMITTEE CHARTER
PURPOSE
The purpose of the Governance & Nominating Committee (the “Committee”) of the respective Boards of Directors of 1st Source Corporation and 1st Source Bank (the “Company”) is to: (i) serve as the senior committee of the Board with oversight responsibility for the effective governance of the Company; (ii) identify, evaluate, recruit and select qualified candidates for election, re‑election, or appointment to the Board; (iii) evaluate and monitor the appropriate structure of the Board; (iv) select directors for appointment by the Board to committee assignments, and (v) oversee any other matters or activities as necessary to ensure appropriate and effective governance of the Company.
COMMITTEE MEMBERSHIP, QUALIFICATIONS
AND MEETING SCHEDULE
The Committee shall consist of at least three directors. All members shall be independent in accordance with the Nasdaq listing standards. At the discretion of the Committee, the CEO shall attend meetings in an advisory, non‑voting capacity. Members of the Committee serve at the discretion of the Board with the expectation that members will serve at least two consecutive years and preferably three. The Board shall appoint one member of the Committee as its chairperson. The Committee shall meet at least once a year and at such additional times as may be necessary to carry out its responsibilities. The Committee will cause to be kept adequate minutes of all its proceedings, and will report its actions to the next meeting of the Board.
AUTHORITY, RESPONSIBILITIES AND DUTIES
Governance
The authority, responsibilities and duties of the Committee with respect to governance are as follows:
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• | Conduct at least biennially a corporate governance review to ensure that the Board is adhering to current practices that are appropriate for the Company in all applicable areas and that the Board and all of its committees are functioning effectively. |
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• | Periodically evaluate the desirability of the size and composition of the Board and make recommendations to the Board for any changes. |
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• | Develop and recommend to the Board the Company’s corporate governance guidelines and any changes therein. |
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• | Monitor and make recommendations to the Board on other matters concerning Board policies and practices relating to corporate governance. |
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• | Develop and review with the Board from time-to-time the guidelines and criteria for determining the qualifications of directors and nominees. |
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• | Annually confirm the continuing independence of the independent directors. |
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• | Annually confirm that independent directors continue to comprise the majority of the Board. |
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• | Annually review the composition of each Committee of the Board and present recommendations for Committee memberships to the Board as needed. |
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• | Review as needed the qualifications of directors to continue serving on the Board upon a change in a director’s residency, employment, commitments to other boards, or other circumstances that may affect the director’s ability to continue to meet the qualifications for service on the Board. |
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• | In the event that it is necessary to select a new Chairman and/or Chief Executive Officer, lead the process and initiate evaluation, consideration and screening of potential candidates. |
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• | Consider and respond to requests for waiver from the requirements of the Code of Conduct made by directors and executive officers. |
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• | Review and determine proposed related-party transactions and potential conflict of interest situations as requested. |
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• | Periodically review the form and amount of director compensation and make any recommendations for change to the Board. |
Nominations
The Board believes that it is in the best interest of the Company and its shareholders to obtain highly-qualified candidates to serve as members of the Board. The Board expects that the Committee will both seek, and consider in response to properly-submitted shareholder recommendations, candidates for election or appointment to the Board who have excellent decision‑making ability, business experience, technical, professional, or educational background, personal integrity and reputation. In addition, the Board recognizes the benefit of board membership that reflects the diversity of the Company’s shareholders, employees, customers, and the communities in which it operates. Accordingly, the authority, responsibilities and duties of the Committee with respect to nominations are as follows:
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• | Annually identify, recruit and select qualified nominees to stand for election or re‑election as directors at the annual meeting of shareholders. |
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• | In the case of a vacancy in the office of a director (including a vacancy created by an increase in the size of the Board), select and recommend to the Board a qualified candidate to fill such vacancy. |
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• | Before selecting a nominee for election or re-election or recommending a director to fill a vacancy, review and evaluate (i) whether the candidate is under the mandatory retirement age of 72; (ii) his or her qualifications, including judgment, skill, capability, conflicts of interest, business experience, technical/professional/educational background; (iii) personal qualities and characteristics, accomplishments, and reputation in the business community; (iv) current residency, knowledge and contacts in the communities, or knowledge and contacts in the industries the Company serves; (v) ability and willingness to commit adequate time, or in the case of incumbent directors, past participation and contribution, to Board and committee matters; (vi) the interplay of the candidate’s experience with that of the other Board members; (vii) the extent to which a candidate would be a desirable addition to the Board and any committee of the Board, (viii) if applicable, whether the candidate would be deemed “independent” under marketplace rules of the Nasdaq Stock Market and SEC regulations, (ix) whether the candidate is qualified and likely to remain qualified to serve under the Company’s By-Laws and Corporate Governance Guidelines; (x) diversity of viewpoints, |
background, experience, and other demographics; and (xi) such other factors the Committee deems relevant.
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• | Approve waiver of the age restriction for an existing director upon determination that such director’s continued service through the current term, or nomination for additional terms, is in the best interests of the Company. |
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• | Review the qualifications of, evaluate and select, if warranted, director nominees submitted in good faith to the Board by shareholders in accordance with the procedures for submitting shareholder nominations set forth in the Company’s Corporate Governance Guidelines or otherwise established by the Board or the Committee. The Committee will evaluate candidates recommended by shareholders on the same basis as other candidates, but may consider, in its decision whether to select such candidates, information respecting the number of shares held and the length of time the shareholder has invested in the Company. |
Other
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• | Delegate all or a portion of its duties and responsibilities to a subcommittee. |
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• | Review its own performance and this charter and recommend any proposed changes every other year coincident with the biennial self-assessment of the full Board. |
LIMITATION
Nothing in this charter is intended to alter in any way the standard of conduct that applies to any of the directors under Ind. Code § 23-1-35 or § 28-13-11, as applicable and as amended. This charter does not impose, nor shall it be interpreted to impose, any duty on any director greater than, or in addition to, the duties or standard of conduct established by such provisions.
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